NOTE E – LEASES

The Company leases, under finance and operating lease arrangements, certain facilities used primarily in the Asset-Based segment service center operations, certain revenue equipment used in the ArcBest segment operations, and certain other office equipment. Operating leases have remaining terms of less than 10 years, some of which include one or more options to renew, with renewal option terms up to five years, and some of which include options to terminate the leases within the next three years. The right-of-use assets and lease liabilities as of March 31, 2019 do not assume the option to early terminate any of the Company’s leases, and all renewal options that have been exercised or are reasonably certain to be exercised as of March 31, 2019 are included in the right-of-use assets and lease liabilities. Variable lease cost for operating leases consists of subsequent changes in CPI index, rent payments that are based on usage, and other lease related payments subject to change and not considered fixed payments. All fixed lease and non-lease component payments are combined in determining the right-of-use asset and lease liability.

The Company has a small number of finance leases recorded in property, plant and equipment and long-term debt related to structures and office equipment that are immaterial to the consolidated financial statements.

The components of operating lease expense were as follows:


	Three Months Ended
	March 31, 2019
	(Unaudited)
	(in thousands)
Operating lease expense	$	5,339
Variable lease expense		839
Sublease income		(67)

Total operating lease expense	$	6,111

Operating cash flows included in the measurement of lease liabilities	$	5,290

Rental expense for operating leases, excluding expenses related to leases with initial terms of less than one year, totaled approximately $5.0 million, net of sublease income, for the three months ended March 31, 2018.

Supplemental balance sheet information related to operating lease liabilities was as follows:


	March 31, 2019
	(in thousands, except lease term and discount rate)
			Land and		Equipment
Operating leases		Total	Structures		and Others
Operating right-of-use assets (long-term)	$	68,737	$	66,684	$	2,053

Operating lease liabilities (current)	$	17,678	$	16,644	$	1,034
Operating lease liabilities (long-term)		54,444		53,442		1,002
Total operating lease liabilities	$	72,122	$	70,086	$	2,036

Weighted average remaining lease term (in years)		5.5
Weighted average discount rate		3.96%

Maturities of operating lease liabilities at March 31, 2019 were as follows:


					Equipment
			Land and		and
	Total		Structures		Other

Remainder of 2019	$	15,250	$	14,423	$	827
2020		17,924		16,914		1,010
2021		13,675		13,401		274
2022		9,490		9,490		—
2023		6,748		6,748		—
Thereafter		17,564		17,564		—
Total lease payments		80,651		78,540		2,111
Less imputed interest		(8,529)		(8,454)		(75)
Total	$	72,122	$	70,086	$	2,036